No. 10/1/2019-St. Th.
‘Government of India
Ministry of Power
Nirman Bhawan, ’F Wing
New Delhi dated 03.05.2022
Sub- Extension sought In timelines for Installation of Flue Gas De-
sulphurisation (FGD) in Thermal Power Plants - regarding.
The undersigned is directed to refer to Ministry of Power letter No.
10/1/2019-St. Th. (part-II) dated 02.01.2021 (copy enclosed) forwarding
therewith a copy of CEA’s report/paper recommending for Plant Location
Specific Emission standards and reviewing the new emission norms in
terms of graded priority of pollutants and prioritizing areas for installation
of additional pollution control equipment by thermal power plants in the
country.
2. CEA has also submitted a review of MoEF&CC Notification dated
31.03.2021 vide letter dated 24 June2021 (copy enclosed). CEA has
‘Suggested the following:
|. There should be longer duration plan (up ta 2035) for adopting
the new emission norms (2015), especially for power plants
falling under category C of the MoEF&CC Notification.
fi, A Task Force may be constituted comprising representative of
MoP, MOEF&CC, NITI Aayog, CEA, CPCB, Generating Utilities/
Manufacturers/Vendors for smooth implementation of new
environment norms considering Phased Manufacturing Program
(PMP) of FGD equipment under Aatma Nirbhar Bharat.
fil, To study the SO2 - reduction against CO2 increase in flue gas
emission by FGD system. Accordingly exemption may be given ta
few units where S02 level in ambient air Is very less compared
to permissible limit.
3. It has also been informed by CEA that as per vendors, construction
time of wet lime based FGD is about 36 - 40 months. However, in respect
of Orders placed by central power utility as early as in 2018 for 26 FGD
units for a total capacity of 15 GW; i had taken a time period, on anaverage of more than 40 months, and some units have taken 47 months
for completion.
4, Due to huge demand for FGO equipments, there is an issue of
manufacturing capacity of FGD by vendors/ manufacturers in the country,
As there is a huge gap in demand and supply, prices quoted by the
bidders for FGO equipments are escalating exorbitantly and sometimes
rigged. CEA has informed that the project cost for wet lime based FGD
technology was Rs. 0.39 crore per MW initially, At present it had reached
nearly Rs. 1.14 crore per MW, which is 2.9 times of initial cost, in a short
span of time, As the same is allowed to pass through under the ‘Change
in Law’ by the regulator, there will be an increase in tariff which Is to be
borne by the consumers.
5. Due to the COVID-19 pandemic, the entire process of planning,
tendering and implementing the FGD has been badly affected. The utilities
are facing fund constraints and the lenders response has not been
encouraging mainly due to poor financial conditions of the Discoms
leading to poor payment position to GENCOs. The recent geo-political
conditions have affected the import of certain components of FGD which
are not manufactured in India viz., absorber linings, borosilicates which
were being imported from countries sharing land borders with India. This
has also led ta disruption in supply.
G. It Is advised that additional time of two years be provided to the
Thermal Power Plants. over and above the timelines given in the MoEFRCC
Notification dated 31.03.2021, for installation of FGD.
7. This issues with the approval of Hon'ble Minister of Power and New &
Renewable Energy.
Enclosed: as stated.
(Govind Kumar)
Under Secretary to the Govt, Of India
Tel: 23061623
To,
Ministry of Environment, Forest & Climate Change,
(Ms. Leena Nandan, Secretary)
Indira Paryavaran Bhawan, Jor Bagh Road,
New Delhi.
Copy to: CEO, NITI Aayog.